DUFF & PHELPS: ATLANTIC CITY ELECTRIC COMPANY $285 MILLION FIRST MORTGAGE BONDS (SHELF) RATED 'A'
CHICAGO, Aug. 17 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A" (Single-A) to Atlantic City Electric Company's shelf registration for $285 million of first mortgage bonds. The company plans to issue $150 million of first mortgage bonds shortly. Proceeds primarily will be used for the repayment or retirement of debt and for construction. Atlantic City Electric's financial obligations will increase as a result of the company's rising purchased power commitments. Atlantic City Electric is obligated to purchase approximately 400 mw of additional, high-cost capacity and related energy from non-utility generators by 1995. At that time, purchased power contracts will constitute approximately 25 to 30 percent of Atlantic City Electric's total generation mix. At the same time, growth in electric demand may moderate as competition intensifies. Atlantic City Electric's credit protection measures as reported are good; however, purchased power adjustments have a significant impact on reported coverages and leverage. To counter higher purchased power costs the company will continue to focus on reducing capital spending, containing costs, and negotiating more favorable NUG contract terms. Equity contributions commensurate with an "A" rating are expected. Atlantic City Electric, a subsidiary of Atlantic Energy Company, provides electric service to more than 450,000 customers in the southern third of New Jersey. -0- 8/17/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (ATE)
CO: Atlantic City Electric Company ST: New Jersey IN: UTI SU: RTG
TS -- NY050 -- 3530 08/17/93 12:04 EDT
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|Date:||Aug 17, 1993|
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